Donnelly Company has three products, R2, R4, and R2D2. The following information is available:

	Product R2	Product R4	Product R2D2
Sales	$30,000	$45,000	$12,000
Variable costs	18,000	24,000	7,500
Contribution margin	12,000	21,000	4,500
Fixed costs:
Avoidable	4,500	9,000	3,000
Unavoidable	3,000	4,500	2,700
Operating income	$4,500	$7,500	$(1,200)

Assuming Product R2D2 is discontinued and the space formerly used to produce the product is rented out for $6,000 per year, operating income will:

54) Assuming Product R2D2 is discontinued and the space formerly used to produce the product is rented for $6,000 per year, operating income will:

A) increase by $3,300.

B) increase by $4,500.

C) increase by $6,000.

D) increase by $7,200.